Like a lot of people who find themselves in need of a car, you have probably found yourself wondering whether you should buy or lease a car. If you talk to ten different people about this you will probably find that half would buy and half would lease so that is not very helpful. What you really have to consider is not other people’s preferences but what your personal goals are, as well as how much money you actually have to work with presently.
Buying a car requires a good down payment if you want to get the best possible deal that you can from the dealership; but no matter how big or small your down payment is, you are probably still going to have to apply for a bank loan in order to pay for the rest of the balance. But if you decide to go with a lease, you will generally only have to come up with a small percentage of the total price of the car as a down payment and then just pay monthly installments for the amount of time that you agree to lease the car for. You will not have to get involved with a bank at all with a lease or a car lease transfer.
The Biggest Advantage Of Leasing
By far the biggest advantage of leasing a car instead of buying it is that you are going to end up with lower monthly payments and that is something that you and your wallet will appreciate every single time that you have to make a payment! We all know that the cost of buying a car is much higher than it is to lease one. You also spend less money to get the car in the first place because you will usually only be required to make a small down payment or none at all depending on the terms of the lease. Yet another detail that makes it a good option is that you will probably not have to pay any upfront sales tax. However, you have to be conscious of the fact that you do not own the vehicle. A lease basically means that you are “borrowing” the car for the agreed amount of time, and the payments you are making are actually for the depreciation that comes from normal usage. A lot of people neglect to keep this in mind and treat the car poorly, costing them more money later on because when a leased vehicle is returned, the dealership expects it to be in good condition since it is theirs. You will pay more if you accidentally bumped, scratched, or even crashed it.
Some Other Advantages Leasing
- You will be driving a new car all the time
You might choose to lease a car or a car lease transfer over buying it for various reasons that make sense for your situation. And if you continue to lease every few years, you will always be driving a new vehicle as opposed to an older model for more years if you had bought the first lease.
- You will avoid having to deal with a bank
Not everyone has great credit, so having to deal with a bank when it comes to a car loan can be a nightmare and you might not even be approved; and if you are approved with bad credit, you are not going to get terms that are beneficial to you so that means an even bigger expense. Leasing companies tend to be a lot more lenient when it comes to approving you so that is definitely a better option is you already know that your credit is bad.
- You will have superior options
When you buy a car, you have to stay within a certain budget not just because you do not want to spend much more than you really need to but also because the bank that issues the bank loan will only give you so much according to certain factors. But when you choose to lease instead of buying you can choose to lease a better car than you could have bought.
You Should Also Consider Some Of The Disadvantages Of Leasing
Of course, not everything can be perfect and that applies to leasing a car too. The biggest downside to leasing a car, or a car lease transfer, is that it is never going to be yours. When you buy a car, despite the depreciation that it must go through because of daily use, it is still yours once the installments are done with and you get to keep it without having to pay anything else; whereas, with a lease, the payments just go on forever if you continue to lease. Another disadvantage to leasing is that the number of miles that you are allowed to drive the car will be limited since the more miles that are put on it the more that it depreciates. If you go over the agreed amount of miles, you will be charged for them. But when you buy, you can drive it for as many miles as your heart desires.